Bear Buyers: Who’s Buying Bitcoin at a Discount?

In the latest Bitcoin correction, over $2.16 billion in realized losses were recorded between February 25-27, with the majority of the sell-off coming from recent market entrants.

This is a classic case of weak hands panicking and strong hands accumulating.

But who exactly is buying, and who is selling? Let’s break it down.

The Panic Sellers: Retail Investors Running for the Exits

According to Glassnode, the largest realized losses came from traders who bought BTC within the past three months, especially those who entered in the past week to a month:

• 1d-1w holders: $927M in losses (42.85%)
• 1w-1m holders: $678M in losses (31.3%)
• 1m-3m holders: $257M in losses (11.9%)
• 24h holders: $322M in losses (14.0%)

Why Retail Is Selling

• Fear of further price drops
• Overleveraged positions getting liquidated
• Lack of conviction in long-term value

The data suggests that recent retail buyers, many of whom bought near the local top, are capitulating under market pressure, locking in their losses.

How many times does this story have to repeat?

Short answer. At least once.

The Smart Money Buyers: Institutions & Long-Term Holders

While retail investors panic sell, institutional players and long-term holders are quietly accumulating. Glassnode data shows that Bitcoin holders who have kept their coins for 3-6 months or longer are not selling:

• 3m-6m holders: $6.5M in losses (only 0.3% of young cohort losses)
• 6m-12m holders: $3.2M in losses (0.15%)

Why Institutions Are Buying

• Bitcoin ETFs continue to see strong inflows
• Citadel Securities and other major players are entering market-making
• On-chain data shows long-term holders are accumulating, not selling
• Historical market cycles show institutions buy into weakness while retail exits

The Liquidation Heatmap: What Comes Next?

A Binance BTC/USDT liquidation heatmap from Coinglass provides more clues about where the market is headed. The chart reveals that most downside liquidations have already been flushed out around the $85K-$90K range, meaning forced selling pressure has significantly decreased.

What’s more important? The next major liquidation zones sit much higher, around $108K. This suggests that if BTC gains bullish momentum, a short squeeze could propel prices toward that level, as shorts are forced to buy back their positions.

The Bigger Picture: Retail Always Sells to Institutions at the Bottom

History has shown this pattern repeatedly:

• 2018 Bear Market: Weak hands sold, institutions accumulated
• 2020 COVID Crash: Bitcoin dumped to $3K, smart money bought aggressively
• 2022 FTX Collapse: Panic sellers offloaded BTC, whales absorbed supply

Retail investors, driven by fear and short-term thinking, consistently sell at the worst possible moments, only for institutions to accumulate and drive prices higher.

What Comes Next? Opportunities for the Smart Investor

With weak hands shaken out and institutional accumulation increasing, this presents a massive opportunity for those willing to play the long game.

How to Position Yourself:

• Stay patient and accumulate during market fear
• Understand that market cycles repeat
• Avoid emotional trading and excessive leverage
• Keep an eye on key liquidation zones ($108K could be a target)

Will You Be the One Selling or Buying?

The market is handing out a playbook: Retail panics, institutions accumulate, prices recover. The only question left is: Are you thinking like an institution or a retail trader?